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Transition Committee January 28, 2007

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Today’s AgendaToday’s Agenda 1.1. Budget – David HillBudget – David Hill

– Review budget submitted to the Legislature in 2006Review budget submitted to the Legislature in 2006– Process and timetable for development of Town of Chebeague Process and timetable for development of Town of Chebeague

Island Budget for July 1, 2007 Town MeetingIsland Budget for July 1, 2007 Town Meeting 2. 2. What will the Town of Chebeague Island What will the Town of Chebeague Island

Look like on July 2? – Donna Damon Look like on July 2? – Donna Damon– Recommended Organizational StructureRecommended Organizational Structure– Recommended implementation by July 2Recommended implementation by July 2– Recommended funding for establishing the TownRecommended funding for establishing the Town

3. 3. Hiring Process – Mark DyerHiring Process – Mark Dyer– PolicyPolicy– Process and timetableProcess and timetable– Statutory considerationsStatutory considerations

4. 4. Report from the Marine Issues Report from the Marine Issues Subcommittee – Leon Hamilton Subcommittee – Leon Hamilton

5. 5. Update on Education Subcommittee and Update on Education Subcommittee and public meeting in February – Carol White public meeting in February – Carol White

6. 6. Contest for the design of a Town seal – Donna Contest for the design of a Town seal – Donna DamonDamon

7.7. Public DiscussionPublic Discussion

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SubmittedFebruary 24, 2006

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Why revisit this?Why revisit this?

As a reminder that we have had a budget for over a As a reminder that we have had a budget for over a yearyear Based on other islands, Cumberland, rough estimatesBased on other islands, Cumberland, rough estimates Not as accurate as current budget, but fairly accurateNot as accurate as current budget, but fairly accurate

To review the items that have been included in the To review the items that have been included in the budgetbudget

To consider this as a starting point for the To consider this as a starting point for the development of the final budgetdevelopment of the final budget

While recognizing that items may be higher or lower While recognizing that items may be higher or lower than budgeted, this is our budget of reference and than budgeted, this is our budget of reference and we’ll come as close to this budget as we can.we’ll come as close to this budget as we can.

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PRELIMINARY TOWN BUDGET (revised February 17, 2006)REVENUESProperty tax revenue $2,219,510Change in deferred (uncollected) taxes (37,500)Auto, snowmobile registrations/excises 48,500Interest and lien costs 1,980Hunting, fishing, shellfish licenses 1,200Marriage, death, birth licenses/certificates 400Boat registrations, excises 5,290Building, electrical, plumbing permits 9,530State revenue sharing 25,730Homestead reimbursement 4,840MDOT block grant 12,160State education subsidy 30,000Rescue fees 13,760Parking violations 500School lunch 2,000Interest income 820Mooring fees 5,020Disposal fees 19,030

Total: $2,362,770

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EXPENSESAdministrationTown administrator and Selectmen $ 121,094Assessor (part-time, contract) 22,760Treasurer, clerk, tax collector 62,577Consulting engineer, land planner 10,000Legal and professional 36,543

Total: $ 252,973Public SafetyPolice $ 81,223Fire and rescue 114,151Code enforcement 12,060

Total: $ 207,435

Public Works $ 150,000

Health, sanitation and welfareWaste disposal $ 164,840General assistance 7,000

Total: $ 171,840

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Recreation $ 40,000

Education and libraryChebeague Island Library $ 44,960Chebeague Island School (total) 281,900Tuition – MSAD #51 302,624Transportation 55,000School capital outlay 25,000

Total: $ 709,484

County Tax $ 107,485

UnclassifiedCemetery $ 5,000Elections 2,000Planning Board 3,322Insurance 40,700Street lighting 4,000Abatements 996Payment in lieu of taxes/tax sharing outer islands 36,000Dredging and wharf reserve accounts 30,000

Total: $ 122,018

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Unbudgeted expenditures (contingencies) $ 56,653

Debt ServiceTown of Cumberland settlement debt $ 29,250MSAD #51 allocated debt 310,829MSAD #51 settlement debt 129,803

Total: $ 469,882

Capital OutlayAdministration $ 25,000Public works 25,000Public safety 25,000

Total: $ 75,000

TOTAL EXPENSES $ 2,362,770

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BUDGET SUMMARY:

REVENUES: Property taxes $ 2,182,010 Excise taxes 48,500 Interest and lien costs 1,980   

Total taxes 2,232,490 Licenses and permits 16,420 Intergovernmental 72,730 Charges for services 16,260 Other revenues 24,870     Total revenues $ 2,362,770

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Expenditures: General government $ 252,973 Public safety 207,435 Public works 150,000 Health, sanitation and welfare 171,840 Recreation 40,000 Education and libraries 709,484 County tax 107,485 Unclassified 122,018Unbudgeted expenditures (contingencies) 56,653 Debt service 469,882 Capital outlay 75,000     Total expenditures $ 2,362,770

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Local valuation $ 115,265,900 Amount needed to be raised by taxes $ 2,219,510 Mill rate $ 19.26 Current mill rate $ 18.80 Percent increase 2.42%

Current Mill Rate $ 18.80 per $1000 Tax on $150,000 home $2,820 Tax on $300,000 home $5,640

Post-Secession Mill Rate $ 19.26 per $1000 Tax on $150,000 home $2,889 Tax on $300,000 home $5,778

UPDATE:

Current Cumberland mill rate is $19.40

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Factors affecting the budgetFactors affecting the budget InflationInflation Oil prices affect almost everythingOil prices affect almost everything New construction revenuesNew construction revenues More specific and identified cost estimatesMore specific and identified cost estimates

The bottom line:The bottom line: We don’t have all the answers but we’re We don’t have all the answers but we’re

on the right trackon the right track We’re doing our best to manage the We’re doing our best to manage the

budget to the best of our abilitiesbudget to the best of our abilities

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Budget Development ProcessBudget Development Process Each committee responsible for developing Each committee responsible for developing

budgets for their areabudgets for their area Bill Shane provided budget worksheets for Bill Shane provided budget worksheets for

each functional area with detailed line itemseach functional area with detailed line items These worksheets will be revised to reflect These worksheets will be revised to reflect

Chebeague’s budgetary needsChebeague’s budgetary needs All worksheets will be combined into master All worksheets will be combined into master

budgetbudget Budget is combined with state and county Budget is combined with state and county

obligations/support to generate mill rateobligations/support to generate mill rate

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FlowchartFlowchart

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Description Budget Request $$ % 2006 Estimated Chebeague % %

  FY 2006 FY 2007 Increase Change FY 2008 Budget FY 2008 vs. est. vs. TC

Administration & Council $ 305,000 $ 280,260 ($24,740) -8% $ 121,094 $ - NA NA

Assessor $ 75,210 $ 138,972 $63,762 85% $ 22,760 $ - NA NA

Treasurer / Tax Collector $ 241,795 $ 262,553 $20,758 9% $ 62,577 $ - NA NA

Technology $ 46,320 $ 94,350 $48,030 104% $ - $ - NA NA

Elections $ 11,600 $ 13,650 $2,050 18% $ 2,000 $ - NA NA

Planning Board $ 63,727 $ 35,680 ($28,047) -44% $ 3,322 $ - NA NA

Engineer/ Admin. $ 2,000 $ 2,000 $0 0% $ 10,000 $ - NA NA

Legal Services $ 45,000 $ 45,000 $0 0% $ 36,543 $ - NA NA

Police Department $ 836,019 $ 856,808 $20,789 2% $ 81,223 $ - NA NA

Fire Department $ 270,488 $ 296,312 $25,824 10% $ 43,541 $ - NA NA

Rescue Department $ 438,640 $ 478,083 $39,443 9% $ 70,610 $ - NA NA

Code Enforcement $ 84,950 $ 92,322 $7,372 9% $ 12,060 $ - NA NA

Harbor Master/ Shellfish Warden $ 14,012 $ 18,952 $4,940 35% $ - $ - NA NA

Canine Control $ 17,723 $ 24,100 $6,377 36% $ - $ - NA NA

Public Works $ 866,664 $ 965,938 $99,274 11% $ 150,000 $ - NA NA

Sample of Expense Summary

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Town of Chebeague Island

January 23, 2007

  PRE-START Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08

CASH ON HAND 0 1,000,000 708,190 518,891 969,960 756,125 627,036 424,222

REVENUES                

Property taxes 0 0 0 957,954 112,700 56,350 0 0

Excise taxes 0 2,720 6,346 4,533 2,720 3,626 2,720 3,626

Interest and lien costs 0 111 259 185 111 148 111 148

Total taxes 0 2,831 6,605 962,672 115,531 60,124 2,831 3,774

Licenses and permits 0 921 2,148 1,535 921 1,228 921 1,228

Intergovernmental 0 4,078 9,516 6,797 4,078 5,438 4,078 5,438

Charges for services 0 912 2,127 1,520 912 1,216 912 1,216

Other revenues 0 1,395 3,254 2,324 1,395 1,859 1,395 1,859

Loans/Other 1,000,000 0 0 0 0 0 4,850,000 0

TOTAL REVENUES 1,000,000 10,136 23,651 974,848 122,837 69,865 4,860,136 13,515

TOTAL CASH AVAIL. 1,000,000 1,010,136 731,841 1,493,739 1,092,796 825,990 5,487,172 437,737

                 

EXPENSES                

General government 0 25,297 22,768 22,768 35,416 20,238 22,768 17,708

Public safety 0 20,743 18,669 18,669 29,041 16,595 18,669 14,520

Public works 0 15,000 13,500 13,500 21,000 12,000 13,500 10,500

Sample of Cash Flow Projection

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Questions Questions and and

CommentsComments

Briefly!Briefly!

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What will theWhat will theTown Town

of of Chebeague IslandChebeague Island

Look like onLook like onJuly 2, 2007?July 2, 2007?

1919

2020

2121

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Implement by July 2ndImplement by July 2nd

UP AND RUNNING!UP AND RUNNING!

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Funding to Establish the TownFunding to Establish the Town

Prior to July 1Prior to July 1stst

Donations from CICADonations from CICA Other donations of equipment and servicesOther donations of equipment and services Line of credit with TD BanknorthLine of credit with TD Banknorth

• Intended to cover necessary expensesIntended to cover necessary expenses• To be repaid immediately after 7/1/2007To be repaid immediately after 7/1/2007

After July 1After July 1stst

Tax Anticipation Note (TAN)Tax Anticipation Note (TAN)• Money to run the town before taxes are collectedMoney to run the town before taxes are collected• Will be included in warrants at Town MeetingWill be included in warrants at Town Meeting

Property taxes, licenses and permitsProperty taxes, licenses and permits

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Questions Questions and and

CommentsComments

Briefly!Briefly!

2525

Hiring ProcessHiring Process

2626

1.1. Each position for employment with the Each position for employment with the Town of Chebeague Island will be Town of Chebeague Island will be described in a job description including described in a job description including key elements of the position, desired key elements of the position, desired qualifications of applicants and proposed qualifications of applicants and proposed salary ranges.salary ranges.

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2.2. Desired qualifications for each position Desired qualifications for each position shall include, among other things, shall include, among other things, experience working as a municipal or experience working as a municipal or school district employee on Chebeague school district employee on Chebeague Island in a comparable position.Island in a comparable position.

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3.3. Each position opening and job Each position opening and job description will be posted publicly on and description will be posted publicly on and off the island.off the island.

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4.4. Current employees of the Town of Current employees of the Town of Cumberland or MSAD #51 with Cumberland or MSAD #51 with experience working on Chebeague experience working on Chebeague Island will be contacted to determine Island will be contacted to determine whether they have an interest in being whether they have an interest in being considered for positions comparable to considered for positions comparable to their current positions with Cumberland their current positions with Cumberland or MSAD #51 and encouraged to apply or MSAD #51 and encouraged to apply for employment with the Town of for employment with the Town of Chebeague Island.Chebeague Island.

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5.5. In evaluating candidates for employment by In evaluating candidates for employment by the Town of Chebeague Island, applicants who the Town of Chebeague Island, applicants who are now employed by the Town of Cumberland are now employed by the Town of Cumberland or MSAD #51 with experience working in or MSAD #51 with experience working in comparable positions on Chebeague Island comparable positions on Chebeague Island will receive preference over otherwise equally will receive preference over otherwise equally qualified applicants without experience working qualified applicants without experience working on Chebeague Island as Cumberland or MSAD on Chebeague Island as Cumberland or MSAD #51 employees.#51 employees.

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6.6. The transition Committee will review all The transition Committee will review all applications. Letters of intent to hire, applications. Letters of intent to hire, including proposed salaries and benefits, including proposed salaries and benefits, will be offered to successful applicants. will be offered to successful applicants. Hiring will be finalized on approval by the Hiring will be finalized on approval by the first Town Meeting.first Town Meeting.

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Tentative Hiring TimetableTentative Hiring Timetable

Advertisements to be placed in Maine Advertisements to be placed in Maine Sunday Telegram, Forecaster and other Sunday Telegram, Forecaster and other places announcing all positions – ASAPplaces announcing all positions – ASAP

Notices to be placed on Island, boat, etc.Notices to be placed on Island, boat, etc. Responses must be received by March 7thResponses must be received by March 7th Interviews to be conducted by Transition Interviews to be conducted by Transition

Committee during MarchCommittee during March Letters of intent will be drawn up with Letters of intent will be drawn up with

successful applicants for July 1st startsuccessful applicants for July 1st start All positions offered pending confirmation All positions offered pending confirmation

at town meetingat town meeting

(Recommendation to be approved by full Committee)

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Statutory ConsiderationsStatutory Considerations

Jobs that require state trainingJobs that require state training Harbor MasterHarbor Master Clam WardenClam Warden Town ClerkTown Clerk Other positions that require state trainingOther positions that require state training

Availability of state trainingAvailability of state training Recommendation that people who might Recommendation that people who might

want one of these jobs should make want one of these jobs should make arrangements to attend trainingsarrangements to attend trainings

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Questions Questions and and

CommentsComments

Briefly!Briefly!

3535

Report from the Report from the Marine IssuesMarine IssuesSubcommitteeSubcommittee

3636

Questions Questions and and

CommentsComments

Briefly!Briefly!

3737

Update from Update from Education Education

SubcommitteeSubcommittee

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Questions Questions and and

CommentsComments

Briefly!Briefly!

3939

What will our Town seal look like?

??????

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Questions Questions and and

CommentsComments

UnlimitedUnlimited